$80,000 hit for Murray over violations of campaign laws

Mr. Murray (T&G file photo/RICK CINCLAIR )

BOSTON — Former Lt. Gov. Timothy P. Murray Thursday agreed to forfeit $50,000 from his political campaign fund and pay $30,000 in fines — including a $10,000 personal fine — as part of a civil settlement reached with the attorney general over alleged violations of state campaign fundraising laws.

The case stems from an investigation of alleged unlawful political fundraising involving Michael McLaughlin, the former executive director of the Chelsea Housing Authority, and E. Bernard Plante, chairman of the Millbury Board of Selectmen.

The settlement ends an 18-month investigation into Mr. Murray's campaign fund-raising that, earlier this year, played a role in his decision not to run for governor, and resolves allegations that he unlawfully accepted contributions solicited by state employees on his behalf.

According to the attorney general's office, Mr. Murray acknowledged in the settlement agreement that during his 2006 campaign for lieutenant governor he actively sought the support of Mr. McLaughlin, who was prohibited from engaging in political fund-raising.

"Based on our investigation, we allege that two separate public employees unlawfully solicited tens of thousands of dollars in campaign contributions for the former lieutenant governor," said Attorney General Martha Coakley of the settlement. "The lieutenant governor will now pay back those contributions as well as pay a significant fine."

The investigation found that Mr. McLaughlin became a field representative and liaison for the Murray campaign, and that Mr. McLaughlin helped organize three fundraising events in Methuen between 2008 and 2010, introducing Mr. Murray to supporters and eventually soliciting tens of thousands of dollars in donations. It also concluded an unidentified state highway supervisor also unlawfully solicited donations for three fund-raisers Mr. Murray held in the Worcester area, while he was lieutenant governor.

The settlement concludes that Mr. Murray failed to exercise reasonable care to ensure that the contributions were not unlawfully solicited or received by Mr. McLaughlin. Mr. McLaughlin, who was fired from his job last year, was sentenced to three years in prison last month after pleading guilty to four counts of falsely reporting his $360,000 a year salary.

Meanwhile yesterday, a Suffolk County grand jury indicted Mr. McLaughlin on 16 new charges of unlawfully soliciting contributions from state employees to support a number of political campaigns, including Mr. Murray's.

Mr. Murray acknowledged in the settlement agreement that a supervisory employee of the state Department of Transportation helped organize and solicit donations as part of three fund-raisers in the Worcester area between 2008 and 2010. Although the settlement agreement does not name the supervisor, the attorney general's office confirmed that Mr. Plante is the DOT official referred to in the document. As a result of those fund-raisers, numerous DOT employees made contributions to Mr. Murray's campaign. All of those funds are also being forfeited to the state.

Mr. Plante could not be reached for comment Thursday night.

Under the terms of the disposition, Mr. Murray's campaign organization will forfeit $50,000 in illegal contributions and pay a penalty of $20,000. Mr. Murray has been assessed an additional $10,000 from his personal funds. Those payments are due within 14 days.

Mr. Murray also agreed to dissolve his political committee and will not serve as an officer or other fundraising-related employee of any political committee for a period of two years. As of Aug. 15, Mr. Murray had $227,111 in his campaign account and has spent $45,000 on legal services since January, according to state campaign finance reports.

A former Worcester mayor, Mr. Murray is now the president and CEO of the Worcester Regional Chamber of Commerce. He resigned as lieutenant governor in June to accept the chamber post, which reportedly pays a salary of more than $200,000.

In a prepared statement, Mr. Murray said he is glad to see completion of the investigation that began in January 2012, when he asked the state Office of Campaign and Political Finance to investigate his fundraising activities, based upon reports that Mr. McLaughlin was improperly soliciting funds for his committee.

"I asked for the investigation because I have always sought to play by the rules and run my political committee within the letter and the spirit of the law. This review has been comprehensive and we have fully cooperated with the authorities every step of the way," Mr. Murray said.

"As I have said from the start, I never asked Michael McLaughlin to solicit funds for my committee, because I know that would have been wrong. The finding that Michael McLaughlin violated the law by asking people to donate to my committee is not shocking today, given what we now know about his character and his criminal actions."

He said many people have been hurt by Mr. McLaughlin's illegal activities including tenants in public housing he oversaw in Chelsea.

"If I knew in 2006 what I know today about Mr. McLaughlin, I would have never had any association with him at all," Mr. Murray said.

Mr. Murray added that Mr. McLaughlin's behavior "does not change the fact that I am ultimately responsible for administrative oversights made by my committee."

"While neither I, nor any member of my committee, was aware that Mr. McLaughlin was making such solicitations, we should have been more vigilant in monitoring the situation," he said.

Regarding solicitations by the unnamed state highway department employee, Mr. Murray said. "Again, I should have been more vigilant."

The allegedly improper fund-raising in Worcester involved campaign events held on May 8, 2008, May 14, 2009, and May 27, 2010, in Worcester

According to the settlement agreement an unnamed individual, identified only as a resident of Worcester County, was a fund-raiser for the committee and his father is a supervisor with the state Department of Transportation and as such not allowed to solicit or receive donations under state law.

The agreement states that the committee and Mr. Murray should have known that as a supervisor with DOT, the father was barred from fundraising activities. Despite that status, the agreement states, that before each of the Worcester events, the committee sent a Federal Express box of invitations promoting the event to the father at his home and that he in turn solicited numerous people for contributions, including many DOT employees.

The new charges against Mr. McLaughlin, 67, of Dracut, were unlawful solicitation by a public employee (four counts), solicitation in a public building (four counts) and conspiracy to solicit in a public building (four counts).